Saudi Aramco is actively seeking to expand its investments in China, focusing on energy, chemicals, and technology sectors, as part of its global growth strategy. President and CEO Amin H. Nasser highlighted this commitment during his address at the China Development Forum in Beijing.
Nasser emphasized that China remains a pivotal investment destination for Aramco, with ongoing projects in Fujian, Liaoning, Zhejiang, and Tianjin. He noted that the company is continuously exploring additional opportunities to strengthen its presence in the Chinese market.
Aramco’s strategic alignment with China’s development plans is evident in its expanding portfolio of refining, chemicals, and marketing projects within the country. The company’s investments are designed to support China’s focus on quality growth and its need for robust supplies of energy and industrial raw materials. Nasser stated that Aramco contributes to China’s energy and chemical security through these initiatives.
A significant milestone in Aramco’s collaboration with Chinese partners is the construction of a $10 billion refinery and petrochemical complex in Fujian province, in partnership with Sinopec Corp. This facility will feature a 16 million metric ton-per-year refinery, a 1.5 million tpy ethylene plant, and a 2 million tpy paraxylene facility. The venture, held by Fujian Petrochemical alongside Sinopec and Aramco, is expected to be operational by 2030, supplying 5 million tons of petrochemical feedstock annually.
In addition to large-scale projects, Aramco has entered into agreements with key Chinese partners to foster closer collaboration. These include preliminary documentation relating to a Development Framework Agreement with Rongsheng Petrochemical Co. Ltd. and a Strategic Cooperation Agreement with Hengli Group Co., Ltd. These collaborations reinforce Aramco’s ongoing contribution to China’s long-term energy security and development, supporting mutual economic growth and technological advancement.
Aramco’s investments in China are not limited to traditional energy sectors. The company is also exploring opportunities in technology, anticipating China’s emergence as a global hub for the chemicals value chain. This forward-looking approach aligns with Aramco’s objective to diversify its portfolio and engage in sectors that promise sustainable growth.
The company’s commitment to the Chinese market is further demonstrated by its ongoing discussions to acquire stakes in Chinese petrochemical firms. Aramco is in talks to purchase a 10% stake in Hengli Petrochemical and is seeking similar deals with other Chinese companies. These potential acquisitions are part of Aramco’s strategy to secure a foothold in China’s burgeoning petrochemical industry.
Aramco’s initiatives in China reflect a broader trend among Middle Eastern oil companies to invest in petrochemical projects as a means to diversify and secure new revenue streams amid the global energy transition. The company’s focus on petrochemicals is driven by the anticipation that these products will become a significant driver of oil demand, especially as the world shifts towards renewable energy sources and electric vehicles.